109. Distinction between mortgage and sale.

If an intended arrangement is not a lending and borrowing transaction but an absolute sale, accompanied by a contemporaneous agreement for repurchase or a stipulation that the conveyance should be void upon payment of a certain sum at a fixed time, this does not entitle the vendor to such a right to redeem as is incidental to a mortgage1, but creates a mere right of repurchase to be exercised in accordance with the terms of the power2. The question is always whether the original transaction was a bona fide sale with a contract for repurchase, or a mortgage under